Gaiam, Inc. (NASDAQ:GAIA), a lifestyle media company, today reported financial results for the third quarter ended September 30, 2013.
: Gaiam is hosting a conference call today, November 7, 2013, beginning at 2:30 p.m. MT (4:30 p.m. ET). The conference call dial-in numbers are (212) 231-2901 or (415) 226-5355. Questions will be reserved for analysts and investors.
On October 21, 2013 (subsequent to the close of the 2013 third quarter), Gaiam divested its non-Gaiam branded entertainment media distribution business (“GVE”) to Cinedigm Corp. for $51.5 million, plus an adjustment for closing net working capital payable in cash. Except where specifically noted, all financial results presented below are inclusive of contributions from GVE. Going forward, Gaiam intends to focus on its branded health and wellness business, including Gaiam branded fitness media content and products, which have a presence in over 38,000 retail doors; the Company’s branded e-commerce platform; and, on Gaiam TV, the Company’s streaming video subscription business.
2013 Third Quarter Financial Results Summary
- Net revenue increased $9.8 million, or 22.8%, for the quarter.
- Business segment net revenue grew $8.8 million or 32.4%. Business segment net revenue excluding the contributions from GVE rose $5.0 million, or 27.3%.
- Direct to consumer segment net revenue rose 6.7% to 17.0 million.
- Net income increased $11.3 million to $0.1 million, or $0.01 per diluted share.
- The quarter end cash balance was $10.9 million.
Lynn Powers, Chief Executive Officer of Gaiam, commented, “Our third quarter results, excluding the contributions from the recently divested GVE business, reflect the success we are achieving with making Gaiam a leading brand across yoga, fitness, and wellness media and accessories. With the divestiture of GVE and the sales of portions of our Real Goods Solar stock, we now have the clear focus and financial resources to continue to grow the Gaiam brand, both organically and through strategic acquisitions. Even though Gaiam is already an established leader in yoga, health and wellness media with an approximate 38% market share, we expect that this market share will continue to expand.